A basic guide to purchasing an investment property

By the resi financial blog team, 23 August 2013

Investing in property has always been a fantastic option for anyone interested in supplementing their own income with a passive, secure and long-term investment. However, there are a number of different things to consider before approaching the real estate market.

First and foremost you must set your investment goals. What do you hope to achieve in the end? And when do you want to have your goals achieved?

Next, with the end goal in mind pick a property investment strategy. There are many options out there such as buy/renovate/sell or buy/hold and wait for a capital gain. Your goals and the timeframe in which you would like to achieve them will determine how aggressive you need to be.

Research is an essential part of any property investment plan. Many investors simply ‘hope’ to make a profit in their investments rather than working the numbers to ensure they are onto a winner.

Make sure you research your chosen area’s demographics, infrastructure and any council plans for future infrastructure. What are the key attributes of the area and why do people live here? Are they mostly owner/occupiers or renters?

Auction clearance rates and a history of how well property has sold in your chosen area is another factor to consider. You should also know the annual growth rate and ensure it’s a growing market.

There is no definitive rule for success however, and making viable investment decisions comes from being well researched , and clear about what you want to achieve.

Finally, make sure you have the right home loan to support your investment strategy. At resi, we have some of the cheapest fixed rate home loan options available. So get in contact with the mortgage managers at resi today for a free, no obligation consultation.